MORGAN STANLEY (1MS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MS - US6174464486 - Common Stock
161.86 EUR
+6.74 (+4.35%)
We assign a fundamental rating of 3 out of 10 to 1MS. 1MS was compared to 121 industry peers in the Capital Markets industry. There are concerns on the financial health of 1MS while its profitability can be described as average. 1MS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1MS was profitable.
- In the past year 1MS has reported a negative cash flow from operations.
- 1MS had positive earnings in each of the past 5 years.
- In multiple years 1MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.14%, 1MS is in line with its industry, outperforming 52.07% of the companies in the same industry.
- 1MS has a Return On Equity of 14.15%. This is in the better half of the industry: 1MS outperforms 71.90% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.46%, 1MS is in line with its industry, outperforming 52.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROIC | 1.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1MS's Profit Margin of 13.32% is in line compared to the rest of the industry. 1MS outperforms 53.72% of its industry peers.
- In the last couple of years the Profit Margin of 1MS has declined.
- The Operating Margin of 1MS (18.06%) is better than 61.16% of its industry peers.
- In the last couple of years the Operating Margin of 1MS has declined.
- 1MS's Gross Margin of 54.99% is fine compared to the rest of the industry. 1MS outperforms 67.77% of its industry peers.
- In the last couple of years the Gross Margin of 1MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% |
OM growth 3Y-4.95%
OM growth 5Y-7.71%
PM growth 3Y-5.29%
PM growth 5Y-7.41%
GM growth 3Y-10.21%
GM growth 5Y-8.75%
2. Health
2.1 Basic Checks
- 1MS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- 1MS has an Altman-Z score of -0.06. This is a bad value and indicates that 1MS is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of -0.06, 1MS perfoms like the industry average, outperforming 46.28% of the companies in the same industry.
- A Debt/Equity ratio of 7.41 is on the high side and indicates that 1MS has dependencies on debt financing.
- 1MS has a worse Debt to Equity ratio (7.41) than 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.30 indicates that 1MS may have some problems paying its short term obligations.
- 1MS has a Current ratio (0.30) which is in line with its industry peers.
- A Quick Ratio of 0.30 indicates that 1MS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.30, 1MS perfoms like the industry average, outperforming 40.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 28.59% over the past year.
- 1MS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.28% yearly.
- Looking at the last year, 1MS shows a quite strong growth in Revenue. The Revenue has grown by 11.54% in the last year.
- The Revenue has been growing by 17.86% on average over the past years. This is quite good.
EPS 1Y (TTM)28.59%
EPS 3Y18.47%
EPS 5Y9.28%
EPS Q2Q%20.72%
Revenue 1Y (TTM)11.54%
Revenue growth 3Y21.98%
Revenue growth 5Y17.86%
Sales Q2Q%10.28%
3.2 Future
- Based on estimates for the next years, 1MS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
- The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y6.59%
EPS Next 2Y9.14%
EPS Next 3Y8.81%
EPS Next 5Y9.05%
Revenue Next Year6.46%
Revenue Next 2Y6.4%
Revenue Next 3Y4.74%
Revenue Next 5Y5.14%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.56, the valuation of 1MS can be described as rather expensive.
- 65.29% of the companies in the same industry are more expensive than 1MS, based on the Price/Earnings ratio.
- 1MS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 17.41, 1MS is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MS indicates a somewhat cheap valuation: 1MS is cheaper than 67.77% of the companies listed in the same industry.
- 1MS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.56 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1MS is valued a bit cheaper than 70.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.82
PEG (5Y)2
EPS Next 2Y9.14%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- 1MS has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
- 1MS's Dividend Yield is a higher than the industry average which is at 3.07.
- Compared to an average S&P500 Dividend Yield of 1.82, 1MS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
- On average, the dividend of 1MS grows each year by 18.94%, which is quite nice.
Dividend Growth(5Y)18.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 41.70% of the earnings are spent on dividend by 1MS. This is a bit on the high side, but may be sustainable.
- The dividend of 1MS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.7%
EPS Next 2Y9.14%
EPS Next 3Y8.81%
MORGAN STANLEY / 1MS.MI FAQ
What is the ChartMill fundamental rating of MORGAN STANLEY (1MS.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1MS.MI.
What is the valuation status for 1MS stock?
ChartMill assigns a valuation rating of 3 / 10 to MORGAN STANLEY (1MS.MI). This can be considered as Overvalued.
What is the profitability of 1MS stock?
MORGAN STANLEY (1MS.MI) has a profitability rating of 4 / 10.
Can you provide the financial health for 1MS stock?
The financial health rating of MORGAN STANLEY (1MS.MI) is 1 / 10.
What is the earnings growth outlook for MORGAN STANLEY?
The Earnings per Share (EPS) of MORGAN STANLEY (1MS.MI) is expected to grow by 6.59% in the next year.